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AUDITING A RISKBASED APPROACH TO CONDUCTING A QUALITY AUDIT 9th Edition Karla M. Johnstone Audrey A. Gramling Larry E. Rittenberg CHAPTER 9 AUDITING THE REVENUE CYCLE Copyright 2014 SouthWestern/Cengage.

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For the revenue cycle, the auditor examines the gross profit margin and the amount of growth that the company has experienced in one year. As part of the revenue cycle audit checklist, he should analyze the organization's maximum capacity for sales if its facility and employees were fully utilized.

The revenue cycle considered by auditors includes the sales process but not collections. The revenue cycle involves the procedures in generating a sales order, shipping the products, recording the transaction and collecting the receivable.

To test completeness, the auditor is looking to select a sample from a reciprocal population outside of the accounting system. Completeness of income testing should be undertaken by selecting a sample from the earliest point in the income cycle and ensuring that everything has been fully recorded.

The revenue cycle considered by auditors includes the sales process but not collections. The revenue cycle involves the procedures in generating a sales order, shipping the products, recording the transaction and collecting the receivable.

For the revenue cycle, the auditor examines the gross profit margin and the amount of growth that the company has experienced in one year. As part of the revenue cycle audit checklist, he should analyze the organization's maximum capacity for sales if its facility and employees were fully utilized.

The five revenue recognition steps of IFRS 15 – and how to apply them. Identify the contract. Identify separate performance obligations. Determine the transaction price. Allocate transaction price to performance obligations. Recognise revenue when each performance obligation is satisfied.

Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review. Client involvement is critical at each stage of the audit process.

The two main stages of a revenue audit include testing the revenue accounts on your income statements followed by an examination of your accounts receivable on the balance sheet. The auditors may also check for revenue recognition issues, such as side agreements and channel stuffing.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232